Are gold and silver reversing?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Just 24 hours ago gold, silver were in downtrends. It now appears that they are trying to reverse back to the original uptrend started months ago. Markets, never being a total surprise when following price action, have demonstrated that last week’s selloff was simply an opportunity to buy. Of course, we are not buying yet, but the action remains bullish throughout today, we will be buying tomorrow.
Gold and silver both had massive rallies Monday and as of early this morning, they are moving higher again. At these price levels, gold and silver are amid a trend change. The price action by the end today will determine if that is indeed the fact and we will be forced to reverse back the long side. We don’t care what side of the market we are on; the right side is always the side that makes money.
Platinum continues to work higher, consistent with the trend that it currently is in, which is no surprise because we expected it. Our job to be with the market not against it gets you using the trend is the path of least resistance. Remember, in these markets and commentaries, we are talking trading, not long-term investing.
Today is Tuesday, August 18 and we will be short, gold and silver throughout the day, no matter what happens, even if the price action continues to confirm a trend reversal. We will reverse tomorrow the long side. Our trend decisions are made once a day after the close, so we don’t get caught in emotional swings during the day.
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